What is an example of direct costs in property management?

In property management, direct costs are expenses that can be directly attributed to the operation and maintenance of a specific property. Payroll for management personnel is considered a direct cost because it encompasses the salary and wages paid to employees specifically working on that property. These individuals often include property managers, maintenance staff, and leasing agents who provide services or oversight that directly benefit the property itself.

Utilities, property insurance, and maintenance supplies can also be significant costs associated with property management, but they do not fall into the category of direct costs attributed to management personnel. Utilities are ongoing operational expenses that may be necessary for the property but are not linked to a specific management function. Property insurance protects the property as a whole but is not directly tied to the active management of the property. Maintenance supplies are essential for operational needs, but they are considered indirect costs since they support the property management function rather than relate to specific personnel.

Thus, focusing on the role of management staff in directly facilitating the property's operations, payroll for management personnel is the most accurate example of direct costs in this context.